A company commenced business on 1 July 2020. On 30 June 2021, a draft statement of financial position disclosed the following information: accounts receivable $45,000, allowance for doubtful debts $10,000, interest receivable $18,000, equipment $150,000, accumulated depreciation equipment $15,000, and provision for long service leave $12,000.

The equipment was acquired on 1 July 2020. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes. The company tax rate is 30%.

In a deferred tax worksheet, the ending balances for the deferred tax accounts are:

Select one:

a.

Deferred Tax Liability $33,000; Deferred Tax Asset $22,000

b.

Deferred Tax Liability $6,600; Deferred Tax Asset $9,900

c.

Deferred Tax Liability $9,900; Deferred Tax Asset $6,600

d.

Deferred Tax Liability $22,000; Deferred Tax Asset $33,000

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